Opec attempts to boost prices again

SAUDI ARABIA’S efforts to shore up global oil prices ahead of the planned listing of Saudi Aramco was met with a shrug from the markets as traders kept their eyes on US shale.

The world’s largest oil producer pledged to cut deeper into its export volumes and take a tougher stance against countries failing to stick to agreed targets. Khalid al-falih, the Saudi energy minister, also told the meeting of the Opec and non-opec producers in St Petersburg yesterday that it would push for the group’s coordinated oil supply cap to be extended through the start of next year if the current deal is not enough to drain the glut of global oil supplies.

Despite the fresh resolve to shore up oil prices, the market reaction was limited, with benchmark Brent settling up a modest 1.1pc at $48.61 a barrel after Nigeria said it had no plans to boost its rising production beyond the cartel’s agreed cap.

But the oil price was still well below the $50 price touched earlier this month, and highs of around $56 earlier this year, due to concern over rising US shale production, which is not governed by the joint Opec and nonopec deal.